W use the under-recognized income accounting identity to provide an important theoretical basis for using the Cobb-Douglas production function in IT productivity analyses. Within the income accounting identity we partition capital into non-IT and IT capital and analytically derive an accounting identity (AI)-based CobbDouglas form that both nests the three-input Cobb-Douglas and provides additi...

This paper studies the effects of heteroscedasticity on the following five types of estimators: (1) Data Envelopment Analysis (DEA) per se as well as DEA joined to regression forms, (2) Corrected Ordinary Least Squares based on maximum residual (COLS-R), (3) Corrected Ordinary Least Squares based on moments of residuals (COLS-M), (4) Maximum Likelihood Estimation (MLE), and (5) Goal Programming...

In this note we show that in a pure exchange economy with two agents and a finite number of goods, there exists no strategy-proof, Pareto efficient and nondictatorial social choice allocation function on any local Cobb-Douglas preference domain. This is a slight extension of a result proved by Hashimoto (2008).

In addition to useful Economic interpretation, auction based algorithms are generally found to be efficient. In this note, we observe that the auction-based mechanism can also be used to efficiently compute market equilibrium for a large class of utility functions satisfying gross substitutability, including a range of CES (constant elasticity of substitution) and Cobb-Douglas functions.

Cobb Douglas production function parameters are not identi…ed from crosssection variation when inputs are perfectly ‡exible and chosen optimally, and input prices are common to all …rms. We consider the role of adjustment costs for inputs in identifying these parameters in this context. The presence of adjustment costs for all inputs allows production function parameters to be identi…ed, even i...